In a long-standing dispute over the value of local TV rights between two Major League Baseball (MLB) franchises, the Washington Nationals and Baltimore Orioles have finally come to an agreement.
The disagreement began in 2005 when the Orioles became concerned about their proximity to fellow MLB team, the Nationals. Following negotiations with league officials, it was decided that MASN would be allocated control of the local TV rights for both teams indefinitely.
While this arrangement allowed for equal payments to both sides every five years, disagreements arose regarding how much each team deserved. For example, between 2012 and 2016, MASN paid just under $200 million dollars to the Nationals. However, an MLB-organised Revenue Sharing Definitions Committee found that they should actually have earned a further amount close to $100m.
Following legal battles over whether or not MLB had been biased towards one side or another throughout these disputes, reports suggest that MASN will now pay back what is owed from 2012-2016 ($100m).
Although there are still ongoing debates regarding how valuable the Nationals' local TV rights were from 2017 until now - which needs resolving through hearings at revenue sharing committees - all parties seem hopeful that this settlement can help pave the way for easier agreements on future fees.
This particular disagreement has made it difficult for those associated with the Washington Nationals franchise. Last year's announcement by the Lerner family stating their intention to sell seems unlikely, mainly because nobody can guarantee who owns its TV right values. However, after several years of heated legal debate, an agreement appears to be closer than ever before.
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